Climate Change to Badly Hit Low-Income Earners, Warns ILO Report 2024

Climate change to badly hit low-income earners — this is the alarming message delivered by the International Labour Organisation (ILO) in its 2024 report titled “State of Social Justice: A Work in Progress.”

The study highlights that 71% of workers globally are already affected by climate change, with low-income groups bearing the heaviest burden despite contributing least to global carbon emissions.

This finding underscores the urgent need for climate justice, stronger social protections, and policies ensuring that the global transition toward a green economy does not deepen inequality.

ILO Report 2024: Key Findings

The ILO report warns that climate change is reshaping the future of work. Key insights include:

• 71% of workers impacted by climate-related effects in 2024.
• Low-income earners contribute just 12% of global emissions but face 75% of income losses.
• 6 million jobs may be lost in fossil fuel industries.
• 24 million new jobs could be created in renewable energy and green sectors.
• 70 million workers will need reskilling and upskilling to adapt to the transition.

Read the full ILO report here.

Impact on Low-Income Earners

The most devastating consequence highlighted by the ILO is that low-income earners will be disproportionately hit.

These workers, primarily in developing nations, already face job insecurity and limited access to healthcare or insurance. With climate shocks — heatwaves, floods, and storms — worsening productivity losses, their livelihoods and survival are at risk.

This stark reality demands urgent intervention, particularly in countries like Pakistan, where millions depend on climate-sensitive sectors such as agriculture, construction, and fisheries.

Job Losses vs. Job Creation in Green Transition

One of the most striking parts of the report is the balance between job losses and job creation:

• 6 million fossil fuel jobs lost due to decarbonization.
• 24 million green jobs created in renewable energy, construction, and transport.
• 100 million jobs created overall when factoring in sustainable agriculture and circular economy initiatives.

This shows a net positive outcome for employment, but the transition will not be smooth. Without planned policies, millions of workers could be left behind.

The Need for a Just Transition

The ILO emphasizes a “just transition” — a framework that ensures:

• Decent work opportunities for all.
• Social dialogue between governments, employers, and workers.
• Reduced inequality in policy design.
• Targeted reskilling programs for vulnerable workers.

Such an approach is vital to prevent climate action from worsening poverty. For Pakistan, adopting a just transition means investing in renewable energy projects, green infrastructure, and skills development programs.

Inequality and Gender Gaps Highlighted

The ILO report sheds light on persistent social and economic inequalities:

• 71% of earnings still determined by circumstances of birth such as gender and nationality.
• 58% of workers remain in informal jobs, lacking protections.
• Gender labour force participation gap remains at 24%.
• At the current pace, it will take 100 years to close the gender pay gap.

These findings reveal that climate change will compound existing injustices, unless addressed with inclusive policies.

Implications for Pakistan and Developing Economies

For Pakistan, a country ranked among the most climate-vulnerable nations, the ILO findings are particularly concerning.

• Agriculture, which employs over 35% of the workforce, is highly exposed to climate shocks.
• Millions of low-income workers in textiles, construction, and transport face job insecurity.
• Rising heat stress threatens productivity in urban labour markets like Karachi and Lahore.

Pakistan’s policymakers must align with ILO’s just transition guidelines to balance climate adaptation with social protection.

Learn more about Pakistan’s climate challenges.

For related reading, see our report on Pakistan’s agricultural vulnerabilities.

Conclusion: Building a Fair and Green Future

The 2024 ILO report delivers a powerful wake-up call: climate change to badly hit low-income earners unless governments act decisively.

While the green transition promises millions of new jobs, the process must prioritize fairness, inclusion, and justice. Without this, the poorest communities — who have contributed least to the climate crisis — will continue to pay the highest price.

For Pakistan and other vulnerable countries, the solution lies in investing in renewable energy, reskilling workers, empowering women, and strengthening social safety nets.

Only then can we turn the climate crisis into an opportunity for sustainable growth and equality.